Given that the franchise fee of $70,000 is 24% higher than typical for this category, what specific additional support, technology, or training justifies this premium pricing?
#1
The average gross sales of $8.9 million per unit appears exceptionally high—can you provide individual unit revenue data for your 2 current franchises to clarify whether this represents sustainable performance or an outlier?
#2
With only 2 franchised units operating, how many of these units are company-owned or operated by the franchisor, and how do their financial metrics compare to franchisee-operated units?
#3
Your system grew 100% in the past year (1 to 2 units). What is your growth projection for the next 3 years, and what strategies are you employing to scale the franchisee base?
#4
The non-compete clause requires 3 years of restricted activity within a 25-mile radius—are there any exceptions or modifications available for franchisees in rural areas where a 25-mile radius may be unreasonably broad?
#5
Can you provide the underlying financial statements or data supporting the $8.9 million average gross sales figure, including gross margin, operating expenses, and net profit breakdowns?
#6
What specific services, technology tools, or training are included in the $300 monthly technology fee, and are there opportunities to reduce this cost or negotiate alternative fee structures?
#7
The renewal fee of $7,000 represents 10% of the initial franchise fee. What retraining, technology updates, or operational improvements trigger this renewal fee?
#8
Have you terminated any franchises or received any franchisee non-renewal requests that did not result in formal litigation? If so, what were the circumstances?
#9
Given the Contract Terms score of 55/100 (below the typical 60-65 range), what specific contract provisions do you believe franchisees find most challenging or restrictive?
#10
Your Investment Cost score of 65/100 is below the typical range of 74-76. Beyond the initial $70,000 franchise fee, what are the typical total startup costs franchisees should expect, and how do they break down?
#11
The minimum monthly royalty referenced in financial obligations—what is the specific dollar amount or formula, and at what revenue threshold would a franchisee pay the flat minimum versus percentage-based royalty?
#12
What percentage of your current franchisees are meeting or exceeding the $8.9 million average sales figure, and what is the range of performance across your unit base?
#13
Can you provide details on the 8 conditions required for renewal, and have any franchisees failed to meet renewal conditions? If so, what were the primary reasons?
#14
The personal guarantee and spousal liability clause requires joint and several indemnification—are spouses required to be personally involved in franchise operations, or is this purely a financial guarantee?
#15
How is 'competitive business' defined in your non-compete clause, and would it restrict franchisees from operating in related senior care services (e.g., personal care, medical transportation) after the franchise ends?
#16
What late fees and interest charges have actually been assessed against franchisees in the past 2 years for royalty non-payment or other financial defaults?
#17
With zero litigation to date, have you provided Item 19 earnings claims or performance representations to prospective franchisees beyond the data disclosed in the FDD?
#18